SF 124 (LSB 1051XS (2) 89)

SENATE FILE 124

BY  CARLIN

A BILL FOR

An Act exempting homestead property owned by certain elderly persons from specified school property tax levies and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 427.1, Code 2021, is amended by adding the following new subsection:
   NEW SUBSECTION.  42.  Homesteads of elderly persons.
   a.  Each homestead, as defined in section 425.11, receiving the homestead credit under chapter 425, the owner of which is a person who has attained the age of sixty-five years, shall be exempt from the following property tax levies imposed by a school district or a community college:
   (1)  Foundation property tax levy under section 257.3.
   (2)  Additional property tax levy under section 257.4.
   (3)  Enrichment levy under section 257.28.
   (4)  Merged area levy for the operation of a community college under section 260C.17.
   (5)  Merged area levy for equipment replacement and program sharing under section 260C.28.
   (6)  District management levy under section 298.4.
   (7)  Cash reserve for a school district’s general fund under section 298.10.
   (8)  School corporation tax authorized under section 300.2.
   (9)  School corporation library levy under section 298.7.
   b.  Claims for the exemption must be filed with the local assessor by February 1 of the first year the exemption is requested upon forms to be prescribed by the director of revenue. Once the exemption is granted, the exemption shall continue to be granted for subsequent assessment years without further filing of claims as long as the property is legally or equitably owned and used as a homestead by that person or that person’s spouse on July 1 of each of those successive years, and the owner of the property being claimed as a homestead declares residency in Iowa for purposes of income taxation, and the property is occupied by that person or that person’s spouse for at least six months in each of those calendar years in which the fiscal year begins.
    Sec. 2.  IMPLEMENTATION.  Section 25B.7 shall not apply to the property tax exemption provided in this Act. 
    Sec. 3.  APPLICABILITY.  This Act applies to property taxes due and payable in fiscal years beginning on or after July 1, 2022.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill exempts homesteads owned by a person who has attained the age of 65 years from the following property tax levies imposed by a school district or a merged area (community college): (1) foundation property tax levy under Code section 257.3; (2) additional property tax levy under Code section 257.4; (3) enrichment levy under Code section 257.28; (4) merged area levy for the operation of a community college under Code section 260C.17; (5) merged area levy for equipment replacement and program sharing under Code section 260C.28; (6) district management levy under Code section 298.4; (7) cash reserve for a school district’s general fund under Code section 298.10; (8) school corporation tax authorized under Code section 300.2; and (9) school corporation library levy under Code section 298.7.
   Claims for the exemption must be filed with the local assessor by February 1 of the first year the exemption is requested upon forms to be prescribed by the director of revenue. Once the exemption is granted, the exemption shall continue to be granted for subsequent assessment years without further filing.
   Code section 25B.7 provides that for a property tax credit or exemption enacted on or after January 1, 1997, if a state appropriation made to fund the credit or exemption is not sufficient to fully fund the credit or exemption, the political subdivision shall be required to extend to the taxpayer only that portion of the credit or exemption estimated by the department of revenue to be funded by the state appropriation.
   The bill makes Code section 25B.7 inapplicable to the property tax exemption provided in the bill.
   The bill applies to property taxes due and payable in fiscal years beginning on or after July 1, 2022.